EASY
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is the difference between the value of exports and imports of goods.

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Important Questions on Open Economy Macroeconomics

HARD
Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments

According to the following data, Balance of Trade would be:

Total exports of merchandise 1000 crore

Total imports of merchandise 1200 crore

Total exports of invisibles 200 crore

Total imports of invisibles 100 crore

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Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Which of the following is a component of Balance of Payment?
HARD
Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Should a current account deficit be a cause for alarm? Explain
HARD
Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Trade deficit is always a great cause of worry for an economy.
EASY
Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Balance of payments is a stock concept.
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Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Equilibrium in Balance of Payments is achieved when the net value of all the receipts and payments is _____ (zero/positive).
EASY
Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Which of the following items are included in Balance of Payments?
HARD
Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Differentiate between the balance of trade and current account balance.
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Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Balance on ‘Balance of Trade’ can be:
MEDIUM
Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
What are official reserve transactions? Explain their importance in the balance of payments.
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Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Who out of the following is included in “Residents” in BOP transactions?
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Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Deficit in balance of trade indicates deficit in balance of payments also.
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Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
If a country exports more goods than what it imports, than the balance of trade is said to be in _____ .
HARD
Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
If the balance of trade is showing a deficit of 300 crores and the value of exports is 1200 crores, then the value of imports would be:
EASY
Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Which transactions determine the Balance of Trade?
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Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Export and import of goods is also known as:
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Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Cotyledons are also called-
HARD
Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Suppose C = 100 + 0.75Y D, I = 500, G = 750, taxes are 20 per cent of income, X = 150, M = 100 + 0.2Y . Calculate equilibrium income, the budget deficit or surplus and the trade deficit or surplus.
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Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
Balance of _____ is narrow concept as compared to balance of payment.
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Economics>Macroeconomics>Open Economy Macroeconomics>Balance of Payments
When receipts of foreign exchange are more than payments of foreign exchange, BOP is: